debt financing – are you ready for it?

Debt has its advantages. It avoids dilution. It is less restrictive. It carries no voting rights.

But most startups find it difficult to raise debt for 2 reasons – they are non-profitable and they don't have hard assets (land & building) to give as collateral. Thankfully, the debt landscape in India is evolving fast, and most lenders are looking at startups as their next big market.

Venture Debt is the most common startup debt product. But even a plain vanilla instrument like Venture Debt varies between lenders and comes with its complexities. On top of it, there are other structured debt instruments for startups.

Our background in debt financing and lending helps you to find the best product for you. It can be invoice discounting, structured debt, venture debt, working capital financing, or a term loan.

When you should contact us?

 

Debt is the perfect substitute for equity for bigger, late-stage startups who have raised some equity capital and achieved strong cash flows. These startups can use debt to meet their current capital/working capital needs.

We look for two things for our debt mandates.

  1. Slightly older startups with at least a few rounds of equity raise behind them

  2. A proven business model and strong cash flows

If your startup meets these criteria, send us an email at hello@tremis.in, and we will find the perfect debt instrument for you.

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